North Carolina Down Payment Support Systems

Online Merchant account - The North Carolina Housing Finance Agency has two excellent plans for first-time Home Buyers. These programs are the Down Payment Assistance Program and also the Mortgage Credit Certificate.

You buy a property between December 1, 2009 and January 1, 2009 and should you qualify for one of these plans, you can ALSO be eligible for the $8,000 tax credit merely enacted into law.

First, who is a first-time Home Buyer? There is a First Time Home Buyer someone who has not owned a home in the past three years. Here is the exact same qualifying definition.

What is a Mortgage Credit Certificate and Who Qualifies?

All home owners can claim an itemized deduction. The MCC takes this a step further. An MCC “reduces your tax liability based on a portion of the mortgage interest which you pay.

In case you qualify for the MCC, you can claim 20% of the interest you pay as a credit on your federal income taxes on your own mortgage. You can save as much as $2,000 on your taxes.

You'll have the ability to unite this if you do qualify for 2009, for the MCC. This may reduce a purchaser's tax liability .

Household income is defined as the “gross income of the mortgagor and any other man expected to live in the dwelling who's 18 years of age or older.”

House price limitations Durham and Chatham Counties and the income are given below.

MCC Income Limits 1 Person $61,500 2 Persons $61,500 3 Men $70,500 4 Persons $70,500

MCC Sales Cost Limitations New House $220,000 Existing House $210,000

Home buyers that need help with their down payment and closing costs may be able to get down payment assistance - or, to put it differently, interest-free, deferred second mortgages up to $8,000. The buyer only has to pay $1,000 of their own funds and the load would pay as much as .

This program has more stringent income limitations than the MCC program summarized above. Like the MCC program, it may be used along with the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The deposit assistance, however, cannot be used along with the MCC. This is an either or scenario.

The income and house price limits that apply in Durham Orange and Chatham Counties are given below.

Down Payment Assistance Income Limitations

1 Man $39,950 2 Individuals $45,650 3 Men $51,350 4 Individuals $57,050

Down Payment Assistance Sales Cost Limits New Home $210,000 Existing Dwelling $210,000